Prime looks at $100mn funding

US-based IT services company Prime (formerly Knowledge Infotech), which has a development centre here, is in the process of raising around $100 million (approximately Rs 410 crore) through the private equity route.

The funds would be utilised to expand its operations in the country besides meeting its capital expenditure.

"We are in advanced stages of discussions with US-based private equity firm Gotham Capital to raise between $50 million (Rs 205 crore) and $100 million, and the deal is likely to be finalised in a month or two," Sudhakar Goverdhanam, president and founder of Prime, told Business Standard.

According to him, part of the funds would be invested in setting up a 500-seater cross-country training centre in Visakhapatnam, and a development centre each in Gurgaon and Pune in the next six to 12 months with an initial investment of close to $20 million.

"Our goal is to take our employee strength in India to around 1,500 from the current 200, in the next six months," he added. It currently employs around 300 professionals globally.

The eight-year-old company caters to around 80 clients that are into healthcare, financial, pharmaceutical, technology and lifesciences services.

Its core competence lies in the $2-trillion healthcare market, and the vertical, together with the telecom segment, contributes 60 per cent to the company's revenues.

Prime, which follows a January-to-December financial year, recorded $7.8 million (Rs 31.98 crore) revenues last year, and is well ahead of its set target of $12 million (Rs 49.2 crore) for this year, recording a turnover of $11.8 million (Rs 48.38 crore) till date.